Jul 29, 2024
Paige Rogers has been a thought leader in managed print services (MPS) for over a decade. With her extensive background in equipment finance, Paige brings you a wealth of knowledge to help you lease copiers & printers. Highly customer-focused, Paige delivers best-in-class customer service, to help you acquire the devices you need to succeed.
If you’re wondering, “can I lease printers for my business?” then you’ve come to the right place. Leasing a printer or copier can be a strategic move for your business if you’re aiming to meet the printing needs of your office without getting into the substantial upfront costs associated with purchasing new equipment.
Understanding the various aspects of copier leasing can help you make informed decisions that align with your organization's operational and financial goals. In this comprehensive guide to copier leasing, you’ll learn what you need to know to get started and make the most of your leasing agreement.
Copier leasing involves renting a copier for a specified period, typically ranging from one to five years. Instead of paying a large sum upfront, businesses pay a monthly fee to use the copier. This approach helps manage cash flow and maintain predictable operational expenses.
Leasing can also provide the flexibility to upgrade equipment as technology advances, ensuring that your organization always has access to the latest features and functionalities.
Types of Copier Leases
There are two primary types of copier leases: operating leases and capital leases. Each type offers different benefits and considerations.
Operating Lease
An operating lease is similar to renting. At the end of the lease term, you return the copier to the leasing company. If you prefer to upgrade your equipment regularly and avoid the responsibilities of ownership, this may be the right option for you. Operating leases usually have lower monthly payments compared to capital leases.
Capital Lease
Also known as a finance lease, a capital lease is more like a purchase. You pay monthly installments, and at the end of the term, you typically have the option to buy the copier for a nominal amount, such as $1. Capital leases are ideal for businesses that intend to keep the copier for a long time. One of the key benefits of a capital lease for an office printing device is that you’ll be able to count the asset depreciation for tax purposes.
Understanding the terminology associated with copier leasing can help you navigate contracts more effectively and avoid potential pitfalls. Here are some key terms to familiarize yourself with:
- Fair Market Value (FMV): The estimated price of the copier at the end of the lease term. Some leases allow you to purchase the copier at its FMV.
- Lease Term: The duration of the lease agreement, typically ranging from one to five years.
- Monthly Payment: The amount you pay each month for the lease.
- Residual Value: The value of the copier at the end of the lease term.
- Maintenance Agreement: Often bundled with leases, this covers routine maintenance and repairs, ensuring the copier remains in good working condition throughout the lease term.
Leasing a copier involves several steps, from assessing your needs to signing the contract and installing the equipment. Here’s a detailed look at each step:
- Assessment of Needs
The first step in leasing a copier is to determine your business’s specific printing needs. Consider factors such as print volume, types of documents printed, required features (e.g., duplex printing, color printing), and future growth projections. This assessment will help you choose a copier that meets your current and anticipated needs. - Research
Once you have a clear understanding of your needs, research various leasing options from different providers. Compare the terms, costs, and included services of each lease to find the best fit for your organization. Look for reputable leasing companies with good customer reviews and a track record of reliable service. - Negotiation
After narrowing down your options, negotiate the terms of the lease with your chosen provider. Discuss aspects such as lease duration, monthly payments, maintenance agreements, and any additional fees. Ensure that all terms are clearly outlined in the lease agreement to avoid misunderstandings later on. - Contract Signing
Before signing the lease agreement, review it carefully to ensure that all negotiated terms are included and that there are no hidden clauses. Pay particular attention to the fine print, such as early termination fees, automatic renewal clauses, and responsibilities for maintenance and repairs. - Delivery and Installation
Once the contract is signed, the company providing the equipment and service will deliver and set up the copier at your location. Ensure that the installation includes proper configuration of network settings, software integration, and user training to maximize the copier’s functionality from the start.
Leasing a copier or a printer offers several advantages, making it an attractive option for many businesses:
- Cost Management
Leasing reduces the need for a significant upfront investment, allowing businesses to preserve capital for other essential expenses. Monthly lease payments are predictable, helping with budgeting and financial planning.
- Access to Latest Technology
Copier technology evolves rapidly, and leasing allows businesses to stay up-to-date with the latest models and features. At the end of the lease term, you can upgrade to a new copier with the most recent advancements, ensuring optimal performance and efficiency.
- Maintenance and Support
Many copier leases include maintenance agreements, covering routine maintenance, repairs, and supplies like toner and paper. This reduces downtime and ensures that the copier remains in good working condition, allowing your staff to focus on their tasks without interruption.
While leasing can be beneficial, it’s essential to be aware of potential drawbacks:
- Total Cost Over Time
Although leasing spreads out the cost over time, it can be more expensive in the long run compared to purchasing a device. The cumulative monthly payments may exceed the cost of buying the same copier or printer.
- Contractual Obligations
Leasing agreements bind you to a contract for the duration of the lease term. Early termination can result in substantial fees, and some leases have automatic renewal clauses that require careful management to avoid unintended extensions. Make sure to discuss early termination fees with your provider.
- Usage Restrictions
Some leasing agreements impose restrictions on copier usage, such as limits on the number of prints per month. Exceeding these limits can result in additional charges, making it crucial to accurately estimate your printing needs before signing the lease.
A good strategic approach is to assess your copier and printer monthly usage before making your final decision. We can help with that.
- Lack of Ownership
At the end of an operating lease, you do not own the device. This can be a disadvantage if you prefer to retain equipment for a longer period and avoid ongoing leasing costs.
That said, considering the rapid advances in printing technology, it might be strategically sound to exchange the device for a newer one in a few years.
Choosing whether to lease or buy a copier depends on your business’s specific needs, financial situation, and long-term plans. Here are some considerations to help you make the right decision:
Budget and Cash Flow
If upfront costs are a concern, leasing might be the better option. Leasing allows you to manage cash flow more effectively by spreading the cost over time.
Technology Needs
For businesses that require the latest technology and features, leasing provides a way to access advanced copiers without the high upfront cost. Regular upgrades ensure that you always have the best equipment for your needs.
Print Volume and Usage
Assess how much and how often you’ll use the copier. High usage may justify the cost of purchasing, as owning the copier can be more cost-effective in the long run. However, if your printing needs are moderate and subject to change, leasing offers more flexibility.
Long-Term Plans
Consider your business’s growth projections and future plans. If you anticipate significant growth or changes in your printing needs, leasing offers the flexibility to scale up or down as needed. If stability and long-term use are more important, purchasing might be the better choice.
Leasing a copier or a printer can provide significant benefits, especially for businesses looking to manage costs and access the latest technology. By understanding the basics of copier leasing, you can make an informed decision that aligns with your business goals and operational needs.
